Foodservice

Mondelez boosts Q3 2023 revenues, earnings

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November 3, 2023

Mondelez International Inc. lifted its Q3 revenues and earnings over the prior year period, surpassing analyst expectations. Highlights include:

• Net revenues increased 16.3% from $7.76 billion in Q3 2023 to $9.03 billion in the quarter ending Sept. 30, 2023, driven by organic revenue growth of 15.7% percent, and incremental sales from the company's 2022 acquisitions of Ricolino and Clif Bar, partially offset by unfavorable currency.
• Net earnings rose from $533 million to $988 million in the comparative quarters.
• EPS rose 84.6% from 39 cents to 72 cents on both a diluted and basic basis, primarily due to lapping prior-year acquisition-related costs, an increase in adjusted EPS, favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, a gain on marketable securities and lapping prior-year inventory step-up charges.
• Adjusted EPS rose 16.7% to 82 cents on a constant currency basis primarily driven by strong operating gains, lower interest expense and fewer shares outstanding, partially offset by higher taxes, lower-benefit plan, non-service income and lower-equity method investment net earnings.

Shares traded at $68.73 today against a 52-week range of $60.75 to $78.59.

The $9.03 in quarterly revenue beat analyst expectations by $220 million while the non-GAAP EPS of 82 cents beat expectations by 4 cents, according to Seeking Alpha.

"We delivered strong third quarter results that reinforce the durability of our categories, strength of our brands and geographies, and consistency of our execution," Dirk Van de Put, chairman and CEO, said in the press release. "All regions delivered strong revenue growth with double-digit profitability growth, underpinned by strong volume/mix performance."

For 2023, the company is updating its 2023 fiscal outlook and now expects 14% to 15% organic net revenue growth versus the prior outlook of 12+%,.

The company's expectation for adjusted EPS growth on a constant currency basis is now approximately 16% versus the prior outlook of 12+%.